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st: Maarten: quick follow-up

From   "Nihal Pitigala" <>
Subject   st: Maarten: quick follow-up
Date   Wed, 01 Nov 2006 16:56:29 -0500

Thanks Maarten, Sorry to pester you on this. I have a brief follow-up question you'll see at the end of the paragraph. I certainly would refere to XT manual on xtmixed. Looks like you offered some tips on this topic to a few. My initial idea is to run a cross section regression i.e. bilateral equation as shown below for the year 2001...where Ai is a set of exporter fixed effects, to control for cross-section stability (this is to control for individual contry specific heterogeneity?) . uijk is normally distributed error term, estimated through OLS.

Can you give me a laymans explanation to estimations such as differencing 1997 and 2001. Thanks very much again. this will help my understanding of Stata and method os estimation.

LnVSikj = Ai+ 1LnTarOik + 2LnTarPikj + 3LnICTikj + 4LnInfrOijk+ 5LnInfPijk
+ 6LnResik + 7LnCapik + 8LnPolik +9LnFinik +10LnGDPik + 11LnRemotijk (4) + Uijk

Nihal Pitigala:
If the data is set up as in the example you show, than you are ready to go:
just type -reg LnTrade LnTariff LnTransports- (without the hyphens). You
might want to consider moving into crossed random effects here using
-xtmixed-, since each pair of countries is nested within its constituent
countries plus each pair consists of multiple entries, which are again nested
within sector. The entry for -xtmixed- in the XT manual is good in explaining
how to set that model up.

Maarten L. Buis
Department of Social Research Methodology
Vrije Universiteit Amsterdam
Boelelaan 1081
1081 HV Amsterdam
The Netherlands

visiting adress:
Buitenveldertselaan 3 (Metropolitan), room Z434

+31 20 5986715

--- Nihal Pitigala wrote:

Data is in the following format:

Country Partner GTAP SectorLn Trade LnTariff Ln Transports
Albania Australia 21 agro -3.178341688 2.546306314 1.941615225
Albania Australia 22 milk -4.937585181 3.714802733 2.385086315

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